Post by moon125 on Nov 6, 2024 3:34:35 GMT -5
Can a company be made more profitable by singing anthems or holding team-building events? This is a question managers ask themselves when reading books on motivation and personnel management. Of course, an anthem itself will not affect a company's financial performance. However, it and other tools aimed at instilling pride in the company in employees can.
Employee loyalty is an intangible asset. It is the desires and way of thinking of employees. For example, the desire to do their job as best as possible or the intention not to part with the employer in the next few years. Despite its “intangibility,” employee loyalty has been translated into monetary equivalent more than once. The international Gallup agency shopify website design calculated that high employee engagement increases a company’s profit by an average of one third. It is especially important to work with team loyalty for a business involved in sales. A study by happiness expert Shawn Achor for Adobe Systems showed that engaged “salespeople” sell more than their disengaged colleagues by an average of 37%.
To make employees happier and more productive, IBM "introduced" them to each other. According to the corporation's calculations, specialists with a wider social circle bring the company an average of $1,000 more.
Russian reality only enhances the economic effect of high loyalty. In general, Russians are not distinguished by loyalty to employers. In 2018, according to the calculations of the NAFI Analytical Center, the employee loyalty index (eNPS) in our country was -37 points. According to the eNPS scale, this means that loyalty is at particular risk. For this reason, against the background of competitors with “minus” motivation among staff, you can not only improve your financial situation through more active sales, but also significantly increase your market share.
Love Index
In the NAFI study, the main complaints of Russians about employers were as follows: wages are below market rates and are paid late, the enormous workload results in constant overtime, the work schedule is inconvenient, and relations with management leave much to be desired.
Of course, each individual company will have its own reasons for dissatisfaction. You can find out with a simple survey - an employee loyalty index or eNPS. As a rule, this is an anonymous survey . Most often, it contains three questions:
"How likely are you to recommend our company as a potential place to work to your family and friends?"
The answer is on a ten-point scale, where 0 means “would never recommend” and 10 means “would definitely recommend”.
The next two questions are open-ended and require detailed answers:
"Why did you give this particular rating?"
And
"What can you do to improve your grade?"
Depending on the assessment, the employee falls into one of three groups:
9-10 points – promoter. Such an employee loves his company and will recommend it as a dream job to his family and friends.
7-8 points – skeptic. In general, he is satisfied with the working conditions, but he will not recommend the company to his relatives.
0-6 points – critic. Such an employee is dissatisfied with the working conditions or the management’s attitude. And he will actively broadcast his dissatisfaction with the company to the outside world.
Next, the percentage of promoters, skeptics, and critics among respondents is calculated. The values for the first and third groups are substituted into the eNPS index formula.
eNPS index = % promoters - % detractors
The NAFI center has received disappointing results for Russia: only 17% are promoters, while critics or dissatisfied people are 54%. In such a situation, when every second employee believes that he is underpaid and works at half strength, it is impossible to even think about developing the company.
The loyalty index is “normal” - above zero. This means that the number of critics at least does not exceed the number of promoters. Of course, with “zero” loyalty, it is almost impossible to develop a company. It is possible to obtain an economic effect from employee loyalty when the eNPS index exceeds 15. Accordingly, the higher the index, the better the financial results its owners will show. Happy Job recorded the highest eNPS indicator in Russia at 47. (Read how to improve the eNPS indicator in a company in our article “Loyalty: an employee recommends the company” .)
The number of promoters must exceed the number of critics by at least a third.
Saving on personnel
Large companies from all over the world are studying the impact of loyalty on business and are coming to interesting conclusions: employee loyalty to a brand can protect against turnover and attract strong specialists . This happens for two reasons:
Firstly, loyal employees stay with the company for a long time.
Secondly, they broadcast information about the company to the professional community as a dream job, which motivates strong specialists to send their resumes to the HR department.
Thus, the company can save significantly on searching and training personnel to replace those who have left. And candidates for open positions will "forgive" not the highest salary in the industry. For example, starting positions at the consulting agency McKinsey are more than modest, but there are many people willing to work for the company.
Every third Russian specialist, when choosing a company as an employer, would prefer a strong HR brand to the highest salary in the industry, according to a Hays study.
Impact on customers
The employee loyalty index directly affects the customer loyalty index or NPS. That is, happy employees will make customers happy and vice versa - unhappy employees will scare away all customers.
A low eNPS score has a negative impact on all business processes. Disloyal employees do not share the company's mission and treat their work as "temporary." They do the bare minimum of their job responsibilities and boycott any changes. Gallup calculated that 41% of disengaged employees have no idea what the value of their company's product is or how it differs from competitors' products.
Employee loyalty is an intangible asset. It is the desires and way of thinking of employees. For example, the desire to do their job as best as possible or the intention not to part with the employer in the next few years. Despite its “intangibility,” employee loyalty has been translated into monetary equivalent more than once. The international Gallup agency shopify website design calculated that high employee engagement increases a company’s profit by an average of one third. It is especially important to work with team loyalty for a business involved in sales. A study by happiness expert Shawn Achor for Adobe Systems showed that engaged “salespeople” sell more than their disengaged colleagues by an average of 37%.
To make employees happier and more productive, IBM "introduced" them to each other. According to the corporation's calculations, specialists with a wider social circle bring the company an average of $1,000 more.
Russian reality only enhances the economic effect of high loyalty. In general, Russians are not distinguished by loyalty to employers. In 2018, according to the calculations of the NAFI Analytical Center, the employee loyalty index (eNPS) in our country was -37 points. According to the eNPS scale, this means that loyalty is at particular risk. For this reason, against the background of competitors with “minus” motivation among staff, you can not only improve your financial situation through more active sales, but also significantly increase your market share.
Love Index
In the NAFI study, the main complaints of Russians about employers were as follows: wages are below market rates and are paid late, the enormous workload results in constant overtime, the work schedule is inconvenient, and relations with management leave much to be desired.
Of course, each individual company will have its own reasons for dissatisfaction. You can find out with a simple survey - an employee loyalty index or eNPS. As a rule, this is an anonymous survey . Most often, it contains three questions:
"How likely are you to recommend our company as a potential place to work to your family and friends?"
The answer is on a ten-point scale, where 0 means “would never recommend” and 10 means “would definitely recommend”.
The next two questions are open-ended and require detailed answers:
"Why did you give this particular rating?"
And
"What can you do to improve your grade?"
Depending on the assessment, the employee falls into one of three groups:
9-10 points – promoter. Such an employee loves his company and will recommend it as a dream job to his family and friends.
7-8 points – skeptic. In general, he is satisfied with the working conditions, but he will not recommend the company to his relatives.
0-6 points – critic. Such an employee is dissatisfied with the working conditions or the management’s attitude. And he will actively broadcast his dissatisfaction with the company to the outside world.
Next, the percentage of promoters, skeptics, and critics among respondents is calculated. The values for the first and third groups are substituted into the eNPS index formula.
eNPS index = % promoters - % detractors
The NAFI center has received disappointing results for Russia: only 17% are promoters, while critics or dissatisfied people are 54%. In such a situation, when every second employee believes that he is underpaid and works at half strength, it is impossible to even think about developing the company.
The loyalty index is “normal” - above zero. This means that the number of critics at least does not exceed the number of promoters. Of course, with “zero” loyalty, it is almost impossible to develop a company. It is possible to obtain an economic effect from employee loyalty when the eNPS index exceeds 15. Accordingly, the higher the index, the better the financial results its owners will show. Happy Job recorded the highest eNPS indicator in Russia at 47. (Read how to improve the eNPS indicator in a company in our article “Loyalty: an employee recommends the company” .)
The number of promoters must exceed the number of critics by at least a third.
Saving on personnel
Large companies from all over the world are studying the impact of loyalty on business and are coming to interesting conclusions: employee loyalty to a brand can protect against turnover and attract strong specialists . This happens for two reasons:
Firstly, loyal employees stay with the company for a long time.
Secondly, they broadcast information about the company to the professional community as a dream job, which motivates strong specialists to send their resumes to the HR department.
Thus, the company can save significantly on searching and training personnel to replace those who have left. And candidates for open positions will "forgive" not the highest salary in the industry. For example, starting positions at the consulting agency McKinsey are more than modest, but there are many people willing to work for the company.
Every third Russian specialist, when choosing a company as an employer, would prefer a strong HR brand to the highest salary in the industry, according to a Hays study.
Impact on customers
The employee loyalty index directly affects the customer loyalty index or NPS. That is, happy employees will make customers happy and vice versa - unhappy employees will scare away all customers.
A low eNPS score has a negative impact on all business processes. Disloyal employees do not share the company's mission and treat their work as "temporary." They do the bare minimum of their job responsibilities and boycott any changes. Gallup calculated that 41% of disengaged employees have no idea what the value of their company's product is or how it differs from competitors' products.